Press Information

30 June 2005

Trading statement

Elementis plc (LSE:ELM) today issues a trading update, ahead of its first-half results, which will be announced on 28 July 2005.

Sales and operating profits have increased during the first half of 2005 compared to the same period of last year, due, in part to the acquisition of Sasol Servo in the second half of 2004. The first half results were in line with the company's expectations.

Elementis Pigments has today announced a rationalisation of its manufacturing facilities. The majority of the facilities at the East St. Louis pigments plant will cease operation during the second half of the year and Elementis will take a one time charge of approximately £7 million in the first half to provide for the costs of the rationalisation. Production will be transferred to other manufacturing sites including the newly constructed facility in TaiCang, China. The company expects that these moves will result in an improvement in margins for its pigments business in 2006 when they will have been implemented fully.

The recently reconstituted board of Elementis is reviewing the company's strategy and each of its operations. The company will provide an update of its plans resulting from this process during the second half.

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